Your bank account, retirement accounts, home value, and so on aren’t a good measure of wealth on their own. It’s an important calculation because your assets only tell half of your financial story. In other words, if you converted everything you had into cash (without any losses or transaction fees) and paid off everything you owe, how much would you have left? That’s your net worth. Net worthĪt a high level, your net worth is calculated by adding up your assets and subtracting your debts. 5 Personal Finance KPIs You Should be Tracking 1. Knowing how your assets stack up against your debts or what percent of your income you’re able to save each month can help you better understand your financial position.Įven if you don’t have a lot of time to do a deep-dive into your financial picture, here are 5 KPIs you can track regularly to help you reach your goals with confidence, along with recommended benchmarks for each one. These kinds of KPIs are just as important when it comes to your personal finances. Profit-and-loss statements and statements of cash flow report revenue and expenses. Balance sheets compare assets to liabilities. Businesses pay close attention to key performance indicators, or KPIs, in taking stock of their finances.
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